g ABC had a net income of $8,000, $5,000, $12,000, and $10,000 over the first four years of the company's existence. If the average annual amount of dividends paid over the last four years is $3,000, what is the ending retained earnings balance

The answer is $23,000

Explanation:

The total net income for the first four years:

$8,000 + $5,000 + $12,000 + $10,000

=$35,000

Average annual dividends paid over the four years is $3,000

Therefore, total paid for years will be $3,000 x 4

=$12,000

So, the ending retained earnings balance will be:

$35,000 - $12,000

=$23,000